The value of any investment is, and always must be, a function of the price you pay for it.
BENJAMIN GRAHAMThe most striking thing about Graham’s discussion of how to allocate your assets between stocks and bonds is that he never mentions the word “age”.
More Benjamin Graham Quotes
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Those with the enterprise lack the money and those with the money lack the enterprise to buy stocks when they are cheap.
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The sillier the market’s behavior, the greater the opportunity for the business like investor.
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Individuals who cannot master their emotions are ill-suited to profit from the investment process.
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Even the most conservative must realize that the recent transformation of surplus from an individual to a national disaster implies a scathing indictment of our capitalist system as it has now developed.
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There is something paradoxical in the fact that by establishing an export market we subject our entire domestic production to the vagaries of that market.
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Every corporate security may be best viewed, in the first instance, as an ownership interest in, or a claim against, a specific business enterprise.
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Have the courage of your knowledge and experience. If you have formed a conclusion from the facts and if you know your judgment is sound, act on it – even though others may hesitate or differ.
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The stock market resembles a huge laundry in which institutions take in large blocks of each others washing … without rhyme or reason.
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Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.
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For 99 issues out of 100 we could say that at some price they are cheap enough to buy and at some price they would be so dear that they would be sold.
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A great company is not a great investment if you pay too much for the stock.
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Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.
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Successful investing is about managing risk, not avoiding it.
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The essence of investment management is the management of risks, not the management of returns.
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Calculate a stock’s price/earnings ratio yourself, using Graham’s formula of current price divided by average earnings over the past three years.
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